Question: You are considering two independent projects with the same opportunity cost of capital of 10 percent. Project A costs $280,000 and has cash flows of
You are considering two independent projects with the same opportunity cost of capital of 10 percent. Project A costs $280,000 and has cash flows of $75,000, $105,000, and $160,000 for Years 1 to 3, respectively. Project B costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. You have sufficient funds to finance any decision you make. Which project or projects, if either, should you accept and why? I would like to see your calculations/equations used, not just the answer)
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